FORDISM IS GLOBALIZATION
Vietnam carmaker VinFast will start selling two EV models in the US next year as it challenges Tesla on its home turf
Huileng Tan
Thu, November 18, 2021
VinFast Global CEO Michael Lohscheller unveils an electric vehicle the Los Angeles Auto Show .Patrick Fallon/AFP
Vietnamese automaker VinFast is setting up US HQ in LA and is also shopping for a factory site.
VinFast is the auto manufacturing subsidiary of Vingroup, the largest conglomerate in Vietnam.
VinFast has not disclosed prices in the US, but it's selling a smaller EV in Vietnam for $30,500.
Vietnam carmaker VinFast has entered the US with its answer to Tesla, unveiling two full battery-electric SUV models at the Los Angeles Auto Show.
VinFast is the car subsidiary of VinGroup, the largest conglomerate in Vietnam helmed by the country's richest man, Pham Nhat Vuong.
It's introducing the VF e35 midsize and VF e36 large electric SUVs to the US, where it plans to start taking orders in the first half of next year and start delivery in the fourth quarter, VinFast said in a press release.
The VF e35 will have a maximum range of 310 miles per charge, and the e36 will be able to travel up to 422 miles per charge, VinFast global CEO Michael Lohscheller told the Associated Press. Teslas get between 262 and 405 miles per charge, depending on the model, according to SolarReviews.com.
VinFast has not revealed prices for the e35 and e36 vehicles, with Lohscheller told CNN it's "a little too early to talk about" the pricing for the US market, but it wants to offer "world-class product quality, reasonable prices, and then really good service."
In Vietnam, the VF e34 SUV — a smaller model — is listed on VinFast's website for 690 million dong ($30,500.) Teslas start at around $47,000 and top out at around $250,000 (for its yet-to-be-released Roadster), according to Motor Trends.
The SUVs will initially be built at a factory in Vietnam, but the carmaker is planning US production in the second half of 2014, AP reported. The company is now shopping for a site.
The carmaker is also setting up US headquarters in Los Angeles, it said in another press release. There are plans to list on the US stock market in the next few years, Lohscheller told Reuters.
The VinFast VF e35 SUV.VinFast
VinFast will sell only EVs in the US where it faces stiff competition not just from market leader Tesla, but also start-ups like Rivian and Lucid — although these new names making it into the mainstream could also help VinFast, Stephanie Brinley, IHS Markit auto industry analyst, told CNN.
"Our branding position here in the US is inclusive," said Nguyen Van Anh, CEO of VinFast US, per CNN. "We want to provide a premium product at a reasonable price."
Vietnam carmaker VinFast will start selling two EV models in the US next year as it challenges Tesla on its home turf
Huileng Tan
Thu, November 18, 2021
VinFast Global CEO Michael Lohscheller unveils an electric vehicle the Los Angeles Auto Show .Patrick Fallon/AFP
Vietnamese automaker VinFast is setting up US HQ in LA and is also shopping for a factory site.
VinFast is the auto manufacturing subsidiary of Vingroup, the largest conglomerate in Vietnam.
VinFast has not disclosed prices in the US, but it's selling a smaller EV in Vietnam for $30,500.
Vietnam carmaker VinFast has entered the US with its answer to Tesla, unveiling two full battery-electric SUV models at the Los Angeles Auto Show.
VinFast is the car subsidiary of VinGroup, the largest conglomerate in Vietnam helmed by the country's richest man, Pham Nhat Vuong.
It's introducing the VF e35 midsize and VF e36 large electric SUVs to the US, where it plans to start taking orders in the first half of next year and start delivery in the fourth quarter, VinFast said in a press release.
The VF e35 will have a maximum range of 310 miles per charge, and the e36 will be able to travel up to 422 miles per charge, VinFast global CEO Michael Lohscheller told the Associated Press. Teslas get between 262 and 405 miles per charge, depending on the model, according to SolarReviews.com.
VinFast has not revealed prices for the e35 and e36 vehicles, with Lohscheller told CNN it's "a little too early to talk about" the pricing for the US market, but it wants to offer "world-class product quality, reasonable prices, and then really good service."
In Vietnam, the VF e34 SUV — a smaller model — is listed on VinFast's website for 690 million dong ($30,500.) Teslas start at around $47,000 and top out at around $250,000 (for its yet-to-be-released Roadster), according to Motor Trends.
The SUVs will initially be built at a factory in Vietnam, but the carmaker is planning US production in the second half of 2014, AP reported. The company is now shopping for a site.
The carmaker is also setting up US headquarters in Los Angeles, it said in another press release. There are plans to list on the US stock market in the next few years, Lohscheller told Reuters.
The VinFast VF e35 SUV.VinFast
VinFast will sell only EVs in the US where it faces stiff competition not just from market leader Tesla, but also start-ups like Rivian and Lucid — although these new names making it into the mainstream could also help VinFast, Stephanie Brinley, IHS Markit auto industry analyst, told CNN.
"Our branding position here in the US is inclusive," said Nguyen Van Anh, CEO of VinFast US, per CNN. "We want to provide a premium product at a reasonable price."
November 20, 2021
Rivien spokespersons confirmed on Friday.
This is actually not a big surprise.
Nonetheless, the move may leave investors wondering why joint development is not a good idea and what the split means for the actions of the two automakers.
First of all, a little background. Even before the split, Ford (ticker: F) canceled a program in 2020 that would have seen one of its vehicles built on a Rivian chassis (RIVN). And last spring, Ford relinquished its seat on Rivian’s board of directors in the run-up to Rivian’s IPO, even though it might have made sense for competitive reasons.
“As Ford scaled its own electric vehicle strategy and demand for Rivian vehicles increased, we mutually decided to focus on our own projects and deliveries,” Rivian said in a statement. “Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared journey towards an electrified future. “
For Ford, the breakup comes with an irony: The company helped Rivian take off by investing in the electric vehicle startup in 2019. Rivian’s market cap, however, has since exploded to around $ 125 billion. , based on its full number of diluted shares. That eclipses Ford’s, which is around $ 77 billion.
But sour grapes on stock prices rarely result in business disruptions. And Ford still owns around 100 million shares of Rivian, which are worth around $ 13 billion.
There are two other dynamics that better explain why automakers have gone their separate ways. The first is that Ford is doing better in the EV game now than when he originally staked Rivian. Ford, which has sold around 22,000 Mustang Mach Es so far this year, plans to sell 600,000 electric vehicles a year by 2023. Ford executives also announced an $ 11.4 billion investment plan. dollars, which will give the company the assembly and battery capacity to manufacture about 1 million additional electric vehicles each year.
Ford has also had some success with its electric vehicles: its Mustang Mach E was named car and electric vehicle of the year in July. The company also plans to start selling its all-electric F-150 pickup in 2022, competing with the Rivian R1T pickup.
The other dynamic: Partnerships between automakers may not make as much sense in a battery-powered world as it does in a gasoline-powered world.
Consider the fact that partnerships between automakers for traditional automobiles were all about scale. The companies would jointly develop a platform for a vehicle, so that they could spread the development dollars over the sales of two companies.
Scale still matters in an EV world, but not in the same way.
Here’s why: Engines, transmissions, and a gas tank provide power to traditional automobiles, with engine displacement varying depending on vehicle size. But with electric vehicles, batteries and electric motors provide the power. Larger EVs typically get more batteries and another electric motor, usually mounted on an axle, than smaller EVs.
The EV platforms come with their own built-in scale, which can be operated on many types of vehicles that the automaker already sells.
Scale still matters and two companies can always jointly develop an EV platform. In fact, Ford and
Volkswagen
(VOW3. Germany) share some of the EV technology with each other. There is just less urgency in forming the kind of partnerships that were profitable in the past.
When it comes to stocks, Friday’s news doesn’t mean much to Ford or Rivian. Ford stock, which closed 0.9% lower in the regular session, slipped about 0.3% in after-hours trading on Friday. Rivian stock, meanwhile, ended up 4.2% as post-IPO volatility continued, before falling around 1.2% after-market.
Investors have yet to pick the winners and losers in the growing electric vehicle industry, but they currently appear to be giving startups the edge. However, they shouldn’t count Ford or other traditional automakers. Based on the level of spending and new products from traditional players, it seems that they are not going quietly overnight.
This is actually not a big surprise.
Nonetheless, the move may leave investors wondering why joint development is not a good idea and what the split means for the actions of the two automakers.
First of all, a little background. Even before the split, Ford (ticker: F) canceled a program in 2020 that would have seen one of its vehicles built on a Rivian chassis (RIVN). And last spring, Ford relinquished its seat on Rivian’s board of directors in the run-up to Rivian’s IPO, even though it might have made sense for competitive reasons.
“As Ford scaled its own electric vehicle strategy and demand for Rivian vehicles increased, we mutually decided to focus on our own projects and deliveries,” Rivian said in a statement. “Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared journey towards an electrified future. “
For Ford, the breakup comes with an irony: The company helped Rivian take off by investing in the electric vehicle startup in 2019. Rivian’s market cap, however, has since exploded to around $ 125 billion. , based on its full number of diluted shares. That eclipses Ford’s, which is around $ 77 billion.
But sour grapes on stock prices rarely result in business disruptions. And Ford still owns around 100 million shares of Rivian, which are worth around $ 13 billion.
There are two other dynamics that better explain why automakers have gone their separate ways. The first is that Ford is doing better in the EV game now than when he originally staked Rivian. Ford, which has sold around 22,000 Mustang Mach Es so far this year, plans to sell 600,000 electric vehicles a year by 2023. Ford executives also announced an $ 11.4 billion investment plan. dollars, which will give the company the assembly and battery capacity to manufacture about 1 million additional electric vehicles each year.
Ford has also had some success with its electric vehicles: its Mustang Mach E was named car and electric vehicle of the year in July. The company also plans to start selling its all-electric F-150 pickup in 2022, competing with the Rivian R1T pickup.
The other dynamic: Partnerships between automakers may not make as much sense in a battery-powered world as it does in a gasoline-powered world.
Consider the fact that partnerships between automakers for traditional automobiles were all about scale. The companies would jointly develop a platform for a vehicle, so that they could spread the development dollars over the sales of two companies.
Scale still matters in an EV world, but not in the same way.
Here’s why: Engines, transmissions, and a gas tank provide power to traditional automobiles, with engine displacement varying depending on vehicle size. But with electric vehicles, batteries and electric motors provide the power. Larger EVs typically get more batteries and another electric motor, usually mounted on an axle, than smaller EVs.
The EV platforms come with their own built-in scale, which can be operated on many types of vehicles that the automaker already sells.
Scale still matters and two companies can always jointly develop an EV platform. In fact, Ford and
Volkswagen
(VOW3. Germany) share some of the EV technology with each other. There is just less urgency in forming the kind of partnerships that were profitable in the past.
When it comes to stocks, Friday’s news doesn’t mean much to Ford or Rivian. Ford stock, which closed 0.9% lower in the regular session, slipped about 0.3% in after-hours trading on Friday. Rivian stock, meanwhile, ended up 4.2% as post-IPO volatility continued, before falling around 1.2% after-market.
Investors have yet to pick the winners and losers in the growing electric vehicle industry, but they currently appear to be giving startups the edge. However, they shouldn’t count Ford or other traditional automakers. Based on the level of spending and new products from traditional players, it seems that they are not going quietly overnight.
GM flags concern over renewable energy in Mexico, sees investment risk
FILE PHOTO: General Motors plant is seen in Silao, Mexico
Fri, November 19, 2021
By Sharay Angulo
MEXICO CITY (Reuters) - A senior executive of carmaker General Motors (GM) raised concern about the future of renewable energy usage in Mexico, saying that without a solid legal basis for it, automotive investment in Latin America's no. 2 economy would suffer.
Francisco Garza, chief executive of GM Mexico, spoke as debate rages over a Mexican government proposal to give priority to the state-run power utility in the electricity market at the expense of private investors, particularly in renewable energy.
Participating in a panel in Mexico City, Garza said it was important for Mexico to forge conditions enabling investment in renewables, to which the company was itself committed.
"Unfortunately, if the conditions aren't there, Mexico won't be a destination for investment, because the conditions won't be given that permit us to meet our objective of having zero emissions in the long term," Garza said.
"We're evaluating that if there aren't the conditions, that dollar that was going to be invested in Mexico will go to the United States, Brazil, China or Europe, and Mexico will no longer be a key destination," he added.
Garza did not make explicit reference to the government's electricity initiative, although others on the panel did.
GM, which has been one of the top investors in Mexico since the start of the North American Free Trade Agreement in 1994, earlier this year said it planned to invest $1 billion https://www.reuters.com/business/autos-transportation/general-motors-make-1-bln-electric-auto-investment-mexico-2021-04-29 to build electric vehicles in the northern state of Coahuila.
After Garza spoke, GM Mexico spokesperson Teresa Cid told Reuters that GM was "at no time threatening" not to make the investments it had pledged for Mexico.
"GM must meet its (zero emissions) vision and we must follow that path," she said. "So that's where the risk would be."
(Reporting by Sharay Angulo; Editing by Sandra Maler)
FILE PHOTO: General Motors plant is seen in Silao, Mexico
Fri, November 19, 2021
By Sharay Angulo
MEXICO CITY (Reuters) - A senior executive of carmaker General Motors (GM) raised concern about the future of renewable energy usage in Mexico, saying that without a solid legal basis for it, automotive investment in Latin America's no. 2 economy would suffer.
Francisco Garza, chief executive of GM Mexico, spoke as debate rages over a Mexican government proposal to give priority to the state-run power utility in the electricity market at the expense of private investors, particularly in renewable energy.
Participating in a panel in Mexico City, Garza said it was important for Mexico to forge conditions enabling investment in renewables, to which the company was itself committed.
"Unfortunately, if the conditions aren't there, Mexico won't be a destination for investment, because the conditions won't be given that permit us to meet our objective of having zero emissions in the long term," Garza said.
"We're evaluating that if there aren't the conditions, that dollar that was going to be invested in Mexico will go to the United States, Brazil, China or Europe, and Mexico will no longer be a key destination," he added.
Garza did not make explicit reference to the government's electricity initiative, although others on the panel did.
GM, which has been one of the top investors in Mexico since the start of the North American Free Trade Agreement in 1994, earlier this year said it planned to invest $1 billion https://www.reuters.com/business/autos-transportation/general-motors-make-1-bln-electric-auto-investment-mexico-2021-04-29 to build electric vehicles in the northern state of Coahuila.
After Garza spoke, GM Mexico spokesperson Teresa Cid told Reuters that GM was "at no time threatening" not to make the investments it had pledged for Mexico.
"GM must meet its (zero emissions) vision and we must follow that path," she said. "So that's where the risk would be."
(Reporting by Sharay Angulo; Editing by Sandra Maler)
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